Steven Kahn

CPAPartner

Overview

Steven Kahn, CPA, is an audit partner at Anchin, Block & Anchin LLP and a key member of the Firm’s Real Estate Industry Group and Architecture & Engineering Industry Group. Steven has more than 20 years of dedicated and diverse experience in all areas of the real estate industry, providing assurance and advisory services to a wide range of privately and publicly-held companies, including investment funds, debt funds, pension fund advisors, real estate investment trusts, opportunity funds, partnerships, limited liability companies, and affordable housing 80/20 projects.

Steven has also managed and/or participated in the valuation and securitization of commercial real estate and mortgage loan portfolios as well as other due diligence engagements. He has also been involved in audits that reported under International Financial Reporting Standards (IFRS).

In addition to his real estate architecture and engineering expertise, Steven is Co-Practice Leader of the Firm’s Transaction Advisory & Public Company Services Group that provides sophisticated advisory and regulatory compliance services for companies considering a major transaction or contemplating going public. He is also a member of the Firm’s Compensation & Benefits Services Group, having extensive experience with pension plan audits on behalf of employers and plan sponsors.

Steven has created training curriculums and taught courses relating to auditing methodology, real estate auditing, and technical accounting policies. He is a member of the American Institute of Certified Public Accountants (AICPA), New York State Society of Certified Public Accountants’ (NYSSCPA) Real Estate Committee and International Accounting and Auditing Committee, and Yeshiva University’s Alumni Professional Real Estate Committee.

Expertise

Accounting and Auditing

Compensation and Benefits

Cost Segregation

Transaction Advisory and Public Company

Industry Focus

Architecture and Engineering

Real Estate

Resources

News

In response to the COVID-19 pandemic, the NYC Department of Finance (DOF) has extended the deadline for the submission of 2019 Real Property Income and Expense (RPIE) statements and storefront registry (new for this year - see below) filings from June 1, 2020 to July 1, 2020. Submissions must be filed electronically, unless you have previously been granted a waiver allowing you to file by mail. New York City continues to expand the type of information real estate owners are required to disclose. Here is a brief reminder of certain filings required to avoid penalties and maintain your rights to challenge assessments.

The Tax Cuts and Jobs Act (TCJA) of 2017 was generally a taxpayer-friendly legislation for the business community. However, there were several provisions in that Act that were implemented as revenue raisers to partially offset the cost of those tax breaks. One of those revenue raising provisions was the business interest expense limitation. This limitation can potentially impact construction companies of all entity types. The recently passed Coronavirus Aid, Relief and Economic Security (CARES) Act modified and increased the existing 30% business interest limitation to 50% for the years beginning with 2019 and 2020. For partnerships, this will not apply to years beginning with 2019, but only for 2020.

If a business applies for and receives a PPP loan that they are ineligible for, they will be subject to civil or criminal penalties. On April 23rd, the SBA and the treasury stated that if a borrower made a false certification and returns the funds by May 7th, the government will not take any action against the borrower. Many believe that May 7th is a catch-all date to return funds for any reason, including ineligibility, to avoid the government from assessing any penalties, although this has not been stated by the government and therefore we suggest you consult your attorney.

The recently passed CARES Act repealed provisions of The Tax Cuts and Jobs Act (TCJA) of 2017 that eliminated the ability to carryback Net Operating Losses (NOLs) and also limited the use of an NOL carryforward to 80% of taxable income. This important change now allows for NOLs incurred in tax years 2018, 2019 and 2020 to be carried back 5 years allowing for tax refund claims.

The Federal government approved $349 Billion for the Paycheck Protection Program (PPP), all of which has been allocated to loan applicants. As we anxiously await additional funding for this program, we thought it would be helpful for those that have yet to apply to learn from the trials and tribulations of those that have filed their applications. Here are some of the frequently asked questions we have received from applicants.

There is a concern that several types of real estate businesses considered “passive” under the SBA rules may not qualify without further clarification from the Treasury. Real estate management companies are not considered passive and are therefore eligible for PPP.

On November 15, 2019, the Financial Accounting Standards Board (FASB) announced it had officially delayed implementing certain accounting standards for private companies, including the new lease accounting standard (ASC 842) for an additional year, from January 1, 2020 to January 1, 2021. But don’t breathe a sigh of relief yet. You will need this extra time to understand the process involved and to collect all the necessary data in order to comply by the deadline.

Accounting for leases has always been a complex area and has undergone significant changes with the release of the Financial Accounting Standard Board’s (FASB) new leasing standard back in April 2016, which will now require most operating leases of lessees to be placed on the balance sheet as a liability.

Accounting for leases has always been a complex area and has undergone significant changes with the release of the Financial Accounting Standard Board’s (FASB) new leasing standard back in April 2016, which will now require most operating leases of lessees to be placed on the balance sheet as a liability.